Dave McClure on Internet Taxes
2001-11-13 07:20 pmVia Declan McCullagh's Politech mailing list.
From: "Dave McClure" <dmcclure@usiia.org>
To: <declan@well.com>
Subject: RE: More on Senate voting soon on Sen. Mike Enzi's Net-tax
bill
Date: Mon, 12 Nov 2001 11:19:02 -0500
Declan:
A few points to make in the discussion of Internet taxation:
1) One of the key points of the Quill decision was the assertion by
North Dakota that sales taxes were the primary funding mechanism for
essential government services that include fire and police as well as
upkeep to the highways and streets. It was essentially the old
"Football" dodge (wherein the school district claims that without an
increase in property taxes they will have to eliminate the very popular
school football team) -- inferring that without the ability to tax
anyone they wished people would die, crime would run rampant and the
roads would go to hell.
The ploy backfired when the Court then asked why out of state vendors
should be forced to pay for services they could and would never use.
If the tax was the mechanism with which to fund government services, the
Court reasoned, it should be paid for by the people who use and benefit
from those services.
No service = No tax
Hence, nexus. Businesses should be required to pay taxes in any
location in which they are provided government services. That is what
the law provides for today, and the way it should remain.
( Read more... )
From: "Dave McClure" <dmcclure@usiia.org>
To: <declan@well.com>
Subject: RE: More on Senate voting soon on Sen. Mike Enzi's Net-tax
bill
Date: Mon, 12 Nov 2001 11:19:02 -0500
Declan:
A few points to make in the discussion of Internet taxation:
1) One of the key points of the Quill decision was the assertion by
North Dakota that sales taxes were the primary funding mechanism for
essential government services that include fire and police as well as
upkeep to the highways and streets. It was essentially the old
"Football" dodge (wherein the school district claims that without an
increase in property taxes they will have to eliminate the very popular
school football team) -- inferring that without the ability to tax
anyone they wished people would die, crime would run rampant and the
roads would go to hell.
The ploy backfired when the Court then asked why out of state vendors
should be forced to pay for services they could and would never use.
If the tax was the mechanism with which to fund government services, the
Court reasoned, it should be paid for by the people who use and benefit
from those services.
No service = No tax
Hence, nexus. Businesses should be required to pay taxes in any
location in which they are provided government services. That is what
the law provides for today, and the way it should remain.
( Read more... )
